Multiple choice

Which of the following is NOT true regarding ULIP?

  1. A unit holder can choose between different kinds of funds.

  2. Life insurer provides guarantee for unit values.

  3. Units may be purchased by payment of a single premium or by regular premium payments.

  4. ULIP policy structure is transparent with regards to the insurance expenses component.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

ULIP is a life insurance product which provides risk cover for the policy holder along with investment options to invest in any number of qualified investments such as stocks, bonds or mutual funds.

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